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Evolution of merger activity
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Fiat Chief Rolls Dice on Market and Chrysler Merger

Fiat Chief Rolls Dice on Market and Chrysler Merger | Research Methods | Scoop.it
Sergio Marchionne of Fiat hopes the open market will set a price for Chrysler shares that will return the U.A.W. trust to the table.
Marine Chambard's insight:

At this point in time, this article is interesting because it details all the reasons for Fiat to merge with Chrysler.

Automotive sector is a sick one and major automotive constructors are now obliged to merge to decrease their costs and face the increasing competition.

This is the example of how a CEO is fighting to get 2 historically huge groups out of bankruptcy.

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Markets Buoyant, Merger Activity Picks Up

Markets Buoyant, Merger Activity Picks Up | Research Methods | Scoop.it
The United States accounted for 43 percent of all deals worldwide, the biggest proportion since 2001.
Marine Chambard's insight:

US merger activity seems to have largely increased since the second semester of 2013 to reach a proportion of 43% of worldwide deals.

Previsions made at the beginning of the year concerning M&A appear to be true thanks to low interest rate, strong economy...

Companies want to take benefit from the increasing stock market to instore a sustainable growth and a confirmation for their shares.

 

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US Airways, American to merge after settling antitrust suit

US Airways, American to merge after settling antitrust suit | Research Methods | Scoop.it
WASHINGTON/NEW YORK (Reuters) - US Airways Group Inc and American Airlines will be allowed to merge to become the world's largest airline after they agreed to give low-cost competitors more access to several...
Marine Chambard's insight:

This article describes a key example of the increasing pressure exerted by the US Government over mergers.

Because of the risk of monopoly and the expected decrease in employment linked to the decrease in competition for major hubs, US Government and 6 States decided to block  American Airlines and US Airways' merger.

To succeed in mergering, they respected conditions (airports maintained...)

Now that M&A activity appears to be a key driver of growth in the context of the crisis, many regulators are scrutining the effects so that to avoid huge economic consequences.

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Shall we?

Shall we? | Research Methods | Scoop.it
THE birds and the bees do it when the weather gets warmer. Likewise company bosses, when times are good and they are feeling frisky, often get the urge to merge....
Marine Chambard's insight:

This article is interesting in that it is about merger activity trend for 2013: strong balance sheets, huge reserves of cash, cheap credit...all of those favourable conditions made economists expecting an increase in M&A activity.

Another key point is that regulatory risk is increasing: the case of Grupo Modelo is mentioned...but History gives us other examples such as American Airlines and US Airways which finally closed their deal in December 2013 (announcement was on February 2013).

Not so huge deals were expected but more what is called "plug and play" deals which allow to decrease costs while increasing margins...

The question finally raised is:

- Are there M&A cycles and M&As trends predictable?

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IT'S OFFICIAL: Fiat Gains Full Control Of Chrysler In $4.35 Billion Deal

IT'S OFFICIAL: Fiat Gains Full Control Of Chrysler In $4.35 Billion Deal | Research Methods | Scoop.it
After more than a year of tense talks, a deal is finally reached where the two companies can merge.
Marine Chambard's insight:

Fiat and its former CEO - Sergio Marchionne- succeeded in negotiations to gain full control of Chrysler Inc. for a total amount of $4.35 billion.

This deal is a symbol: Mr Marchionne succeeded in making Chrysler leaving bankruptcy.

He went to hard negotiations because an IPO to get Chrysler was under discussion.

Fiat currently needs Chrysler to cut losses in Europe.

This case is a good example of merger activity as a rescuing way from bankruptcy and its risks.

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ChromaDex(R) Appoints Former Nestle Executive to Its Board of Directors - WSJ.com

ChromaDex(R) Appoints Former Nestle Executive to Its Board of Directors - WSJ.com | Research Methods | Scoop.it
Marine Chambard's insight:

This press release offers a good view on the value of an executive - currently, M. Steve Allen- with his experience as negotiator in M&A in Nestlé can represent an excellent advisor within the Board of Directors of ChromaDex(R).

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Amidst Merger-Mania, The Assets Most Often Under-Valued

Amidst Merger-Mania, The Assets Most Often Under-Valued | Research Methods | Scoop.it
Though they’re difficult to quantify, there are clearly significant financial advantages to human assets.
Marine Chambard's insight:

This article brings a contribution on the human aspect to respect when two companies are merging - a testimonial coming from Fred Hassan, the former Chairman of Bausch & Lomb - 150-year-old company recently acquired by Valeant Pharmaceuticals

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Merger Activity Was Down but Not Out in First Half

Merger Activity Was Down but Not Out in First Half | Research Methods | Scoop.it
Despite a strong start that yielded four blockbuster transactions in one week, the first half of 2013 was the slowest first six months for mergers in four years.
Marine Chambard's insight:

Many debates appeared about whether or not we are in a booming period of mergers and acquisitions but it appears that the 1st semester of 2013 was one of the poorest in deals since 2003. Fostering conditions are gathered (low interest rates with high growth in stock markets) but even major deals were completed (Heinz, Thermo Fischer Scientifics...).

Merger activity is low but many sectors are expected to make it increasing (Healthcare, Telecommunication...) in the second half....trend to confirm!

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